ST JUEWEI: Received administrative penalty for not confirming income from franchise store renovation business

ST JUEWEI announced that the company failed to recognize revenue from franchise store renovation services during the period from 2017 to 2021, resulting in an understatement of operating income in the annual report. The company was fined 4 million yuan by the Hunan Regulatory Bureau of the China Securities Regulatory Commission. The company's chairman and general manager Dai Wenjun, chief financial officer Peng Caigang, and board secretary Peng Gangyi were fined 2 million yuan, 1.5 million yuan, and 1 million yuan respectively. The company will retrospectively adjust the relevant financial statements and strengthen the construction of internal control processes. This penalty does not involve circumstances that would trigger mandatory delisting for major violations, but the company's stock will be subject to other risk warnings